Grupo Rotoplas S A B

Good morning, and welcome to Grupo Rotoplus' results conference call. Please note that today's call is being recorded, and all participants are currently in listen-only mode to prevent background noise. The host will open the floor for questions later. Today's discussion contains forward-looking statements. These statements are based on the environment as we currently see it, and as such there may be certain risk and uncertainty associated with such statements. Please refer to our press release for more information on the specific risk factors that could cause actual results to differ materially. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, further events or otherwise. Please allow me to remind you that the company issued its earnings press release yesterday after market close. It can be found in the Investors section of its website. Also, the presentation for the call and the webcast link are in the Investors section. Today's call will be hosted by Mr. Carlos Rojas Abumrad, Chief Executive Officer, and Mr. Mario Romero, Chief Financial Officer. I will now turn the call over to the speakers.

Good morning, everyone. Thank you for being with us today to discuss our strategy and the results across our operations. Before we review this quarter's results, I would like to hand the call over to Alta Nova, our AI voice and spokesperson on water issues, who will provide an update on the current water situation. Alta Nova, the floor is yours.

Good morning, everyone. It's a pleasure to be here again. Rotoplus is deeply connected to the environment, especially to the resource that defines the existence on this planet. As we analyze current trends, it's evident that the global water crisis continues. with data revealing a path towards critical shortages and scarcity. The recent heat waves and persistent drought conditions in Mexico have exacerbated the already critical water scarcity. The combination of high temperatures and inadequate rainfall has severely impacted water availability across the country. Currently, 73% of the rainfall evaporates, 21% runs off, and only 6% infiltrates the groundwater. In Mexico, Rotoplaza's operations are crucial, particularly as the country faces acute water scarcity, especially in the northern and central regions. Overexploitation of aquifers and inadequate management practices are key factors affecting both urban and rural communities. As of July 15, the average storage level of the Kutzamala system was 29.1%. a slight increase from previous weeks, but still critically low compared to its historical average of 59.9%. The drought has profoundly impacted agriculture, with 68% of the water in Mexico dedicated to this sector. The reduction in water availability threatens food security and the livelihoods of many communities. For instance, the severe drought conditions have already reduced crop yields by an estimated 30%, affecting farmers' income and increasing food prices. Additionally, only 17% of the Mexican population has constant access to water. This highlights inefficiencies in water distribution and the urgent need for better infrastructure. The commitment at Rotoplas is to address these challenges through comprehensive water management. The fight against water scarcity is an urgency humans shouldn't overlook. We are already witnessing the effects of this phenomenon on our operations and communities, as at least 69% of the impact of climate change is expressed through the water cycle. And as we have already shared with you, it is estimated that for every degree Celsius increase in global climate, there is a 20% decrease in the availability of renewable water and change in rainfall patterns. For example, in the U.S., as shown in the slide, rainfall has alleviated drought conditions with improvements observed in 2022, 2023, and 2024. In Peru, as climate change exacerbates temperature variations, and increases the frequency and intensity of extreme weather events. People have experienced unusual cold spells this winter. We have to create resilient water solutions that can withstand the pressures of climate change and population growth. Thank you for your attention. We look forward to continuing our work together to tackle these challenges and ensure a secure water future for all. Over to you, Charlie.